Iowa Insurance

For the second time in 10 days, the House of Representatives by an overwhelming majority legislation today that it had changed greatly the nation’s 60-year-old banking laws.

The vote this evening, a defeat for the White House and Democratic House seemed likely to force President Bush and the Congress of the Bank aimed at limiting the legislation this year on an action would be something more than the shore almost exhausted Deposit Insurance Fund, in the tens of billions of dollars in loans taxpayers.

The General Accounting Office predicted yesterday that the health insurance fund would be money within six weeks. The Fund, which has rapidly gone in the wake of more losses of the bank since the Great Depression, is now behind more than $ 2 trillion in deposits. Senate also at the workplace

The Senate now move late in the evening with its own version of the banking legislation, but had not made decisive vote.

The House defeated by a vote of 227 to 191, moments agreed by the representative closely to determine, with the support of President Bush, who accepted the nation stronger banks to extend lines of State, but could continue to restrict the industry to enter the insurance and real estate company.

It illustrates once again the enormous power on Capitol Hill by real estate, insurance, banking and securities sectors. They were fighting and form alliances alternatives for the month of legislation and separately in the role model have enough votes to practice a kind of authority right of veto over any measure, moves on the ground.

The Indians lobbying seems to overshadow the fact that virtually no questions directly to the overwhelming majority of voters, but they bear directly on the future of banks, insurance companies and Wall-Street-investment.

“One of the lessons to be learned from this,” said Representative Jim Leach, Republican of Iowa, voted for the bill, “is that it is quite difficult, a bank account, if banks fuels taken. ”

Furthermore, reflects the fear of many donors law on adoption is what is widely perceived to be a big taxpayer bailout for banks.

In the hours until the final this evening, White House and Treasury officials, including Treasury Secretary Nicholas F. Brady, lobbyists, legislators hard for the bill so that the stronger nation of state banks to develop lines, but in the insurance industry and real estate business.

And President Bush has thrown his weight behind the legislation as a whole, even if it did not contain any of his proposals in February, banks, the Authority for the capture of securities and insurance companies and owned industrial.

The White House is reflected felt that this was the best that could be out of the house by an overwhelming majority, a bill of more than 4 November. Officials of the administration had said there would be too many restrictions for banks.

The assumption Interstate Banking provision of the White House today by a margin of two to vote, 210 to 208 It was supported by 99 Democrats and Republicans against 111 and 160 Democrats, 47 Republicans and 1 independent. The vote has been stalled until the last second, J. Dennis Hastert, Republican of Illinois, joined his ballot papers from non yes.

In the final vote on the bill, 77 Republicans and Democrats, 114 were set for the action, and 181 Democrats, 45 Republicans and 1 independent against.

The chairman of the House Banking Committee, Representative Henry B. Gonzalez of Texas, said the commission would begin drafting legislation next week to provide money for the Insurance Fund, the bank would not Intergovernmental on banks, real estate or insurance.

The defeat today is the product of a coalition of conservative Democrats, argued that the bill does not go far enough for banks, with Liberal Democrats, said he had gone too far and do not benefit from consumers’ bank.